The Hazardous Materials Safety and Security Technology Operational Test

Slide 1:The Hazardous Materials Safety and Security Technology Operational Test

Joseph P. DeLorenzo Midwest Service Center Hazardous Materials Specialist T3 Session April 26, 2005 Identifying Improvements in Safety, Security and Efficiency

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Presentation Outline Research Overview Deployment Technology & performance Evaluation Benefit-cost analysis using wireless communication with GPS as example Conclusions

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Project Goals Demonstrate an approach that uses existing technology to improve the safety and security of HazMat Quantify the benefits and costs of this approach Safety, Security & Efficiency

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Research Questions The study quantitatively verified many assumptions about technology & security Wireless communication w/ GPS is the base for all impact areas Efficiency drives private deployment Benefit-cost ratios vary based on load type (Low end is LTL, High end is explosives) Technology is most effective at reducing theft Technology is not a complete solution

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Research Approach Utilized an Expert Panel & Delphi Process Co-chaired by TSA and SAIC Includes representatives from major associations and other security/counter terrorism experts. Provided input into staged and controlled tests Providing input into Delphi process Reviewed and commented on final analysis

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Risk/Threat Assessment Sets the stage for the rest of the project: Considers: Commodities, quantity, frequency, operation type, routing and loading/ transfer points Organize the safety and security risks Frames the problem Identifies vulnerabilities

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Test Design Developed Operational Test Scenarios Address major threats and vulnerabilities Consider different industry segments (bulk fuel, LTL, Truckload explosives, bulk chemical) Selected Technologies Existing technologies Technologies suites address multiple vulnerabilities Cost tiers Included carriers, shippers, consignees and state agencies

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Test Design

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Technologies Tested Served as the base technology Both Satellite and Terrestrial Communications with GPS Digital Cellular phone Wireless � Mobile Communications

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Technologies Tested AVL (GPS) Geofencing, Off-route alerts Tethered trailer tracking Untethered trailer tracking Vehicle and Trailer Tracking RESULTS/LESSONS LEARNED Functioned as expected Geofencing had high level of interest but there are resolution issues Trailer tracking has high level of interest (additional FMCSA testing)

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Technologies Tested In-dash Wireless remote Local disabling Panic Buttons RESULTS/LESSONS LEARNED Drivers like both in-dash and key fob Viewed as �insurance policy� Did not expect high usage but recognized they created �piece of mind�

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Technologies Tested On board computers Remote vehicle disabling Loss of signal disable Dispatch initiated Local (no OBC) Remote locking and unlocking RESULTS/LESSONS LEARNED Disabling: Technology functioned well, there are concerns about the application of the technology under real-word conditions Remote locking and unlocking: Worked excellent in both daily operations and on-site testing

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Technologies Tested Global Login/ Password Biometric smart card Electronic Supply Chain Manifest (ESCM) Driver and Cargo Identification and Verification RESULTS/LESSONS LEARNED Biometrics: Good fingerprint reads were difficult due to environmental, ergonomic and other issues, needs further development Global Login: Well received and functioned reliably. ESCM: Poor performance of biometrics and duplication of effort affected the ESCM

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Technologies Tested RESULTS/LESSONS LEARNED Operational problems were identified with the process of assigning and locking seals Communication problems were noted with the seal due to trailer designs System usage was complex, need further development Driver and Cargo Identification and Verification Electronic Seals

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Technologies Tested Automated Public Sector Response Center (PSRC) Carriers & Shippers Qualcomm NMC Law Enforcement & Emergency Response Community

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Technologies Tested Automated Public Sector Response Center (PSRC) Spill Center PSRC Carriers & Shippers Qualcomm NMC Law Enforcement & Emergency Response Community

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Technologies Tested Automated Public Sector Response Center (PSRC) RESULTS/LESSONS LEARNED Technology functioned well, demonstrated ability to reduce incident notification times. System needs to be exception based. There are concerns about relying on an industry based system. Message priority is a concern. Needs of public sector need to be further investigated.

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Technology Compendium Development of a research compendium of technologies and service providers Currently 94 providers with 147 existing technologies Enhancements planned Via www.safehazmat.com

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Evaluation Approach Overall goal to provide information for decision-makers Conservatism built into the analysis wherever possible Costs include those for systems already deployed Minimum benefits calculated Assumes security benefits start to accrue at or near full deployment Note: To date no studies were uncovered that have attempted the analysis conducted here, particularly relating to security benefits

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Efficiency Benefits Efficiency benefits defined for wireless communication with GPS Payback periods within industry standards Recognizing that all operations may not realize all of the benefits, a �minimum� benefit was calculated. Full deployment could result in savings of $1 billion per year industry wide

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Efficiency Benefits Wireless Communication with GPS Positioning * For the first three years: Includes monthly service fees and capital costs amortized over the three year period

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Efficiency Benefits Wireless Communication with GPS Positioning * For the first three years: Includes monthly service fees and capital costs amortized over the three year period

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Efficiency Benefits Efficiency ratios give some indication to the speed at which technology will be voluntarily deployed * Assessment of ITS/Commercial Vehicle Properties User Services, Prepared By ATA Foundation, June 1996 ** Motor Carrier Technologies, Prepared by ATA Foundation, October 1999 *** Motor Carrier Technologies Survey, Prepared by American Trucking Associations, 2001

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Safety and Public Sector Benefits Public Sector focused on two areas: Improved response times through faster notification Panic buttons provided time savings of 18 minutes over traditional notification process Off-route detections improved by nearly 3 hours Improved quality of information Positive driver ID time savings of 28 minutes Alerts included manifest information, driver information and location

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Safety and Public Sector Benefits Public Sector Reporting Center Concept Proof-of-concept test Other issues such as functioning with wider deployment and message priority must be considered. Industry participants expressed an interest in the PSRC concept to improve asset management

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Security Benefits Using the Delphi method vulnerability reductions were identified Greatest reduction was from the base wireless communication system with GPS Incremental gains were identified from the other technologies Greatest reductions were in theft prevention

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Security Benefits Selected Vulnerability Reductions: Bulk Fuel

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Security Benefits Potential cost savings based on vulnerability reductions Calculated benefits (safety, security 7 efficiency) using 3 methods Net benefits Benefit � Cost Ratios Break � even analysis Combined benefits analysis

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Security Benefits Wireless Communication with GPS

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Security Benefits Break Even Points for 3 year period

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Overall Benefits & Costs Wireless Communications + GPS Overall benefits = Safety Benefit + Security Benefit + Efficiency Benefits

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Conclusions The wireless communication system with GPS tracking provided efficiency benefits and the base vulnerability reduction Additional technologies provided incremental improvements in security. A stratification of load types and technologies seems inherent in the results Greatest vulnerability reductions were provided for theft scenario Wireless communications with GPS tracking provided a positive return on investment in all four test scenarios.

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Conclusions Except for LTL, preventing only one terrorist attack over a three year period produces a cost savings well beyond the break even point. The combined benefit-cost analysis showed positive benefit-cost ratios in all categories Notification times and the quality of information provided to the public sector was improved.

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The Bottom Line Despite the results, technology alone is not a complete security solution � only technology along with sound security practices and supported by ongoing public and private outreach, training and security programs can help to meet a constantly present threat.

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Next Steps High-level Needs Assessment to address public sector response to hazmat safety and security incidents. Completion April 2005 Industry Outreach Task Promote voluntary deployment Continue and expand Technology Compendium Additional testing: Untethered Trailer Tracking Expanded Satellite Based Communications Vehicle Disable (upcoming)

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Final Reports Posted on the FMCSA Web site: www.fmcsa.dot.gov http://www.fmcsa.dot.gov/safetyprogs/fot/ 2 Final Reports Deployment final report � describes the actual testing process and lessons learned Evaluation final report � the independence evaluation and benefit-cost analysis

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joseph.delorenzo@fmcsa.dot.gov 708.283.3572